Income Taxes (Tables)

12 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

Schedule of Income Taxes from Continuing Operations

Income taxes from continuing operations in the accompanying consolidated statements of income for the fiscal years ended September 30 are as follows (in thousands):

	2016		2015		2014
Current provision:
Federal	$	6,550	$	6,065	$	6,470
State and foreign		152		136		147
Total current provision		6,702		6,201		6,617
Deferred provision (benefit):
Federal		169		58		(347	)
State and foreign		92		35		(5	)
Total deferred provision (benefit)		261		93		(352	)
Total provision	$	6,963	$	6,294	$	6,265

Schedule of Reconciliation Difference of Income Taxes

The reconciliation of the difference between amounts calculated at the statutory U.S. federal tax rate of 35% for the fiscal years ended September 30 and the Company’s effective tax rate from continuing operations is as follows (in thousands):

	2016			2015			2014
Amount at statutory U.S. federal income tax rate	$	5,932		$	6,385		$	6,465
Change because of the following items:
State income taxes, net of federal benefit		142			67			118
Stock-based compensation		(607	)		16			21
Valuation allowance change		(2,500	)		348			120
Tax reserve change		258			34			(121	)
Federal manufacturing deduction		(280	)		(268	)		(235	)
Federal research and development credit		(571	)		(74	)		(67	)
Gain on strategic investment and corporate subsidiary		2,630			—			—
Foreign rate differential		622			—			—
Acquisition-related transaction costs		768			—			—
Contingent consideration accretion		522			—			—
Other		47			(214	)		(36	)
Income tax provision	$	6,963		$	6,294		$	6,265

Schedule of Deferred Income Taxes

The components of deferred income taxes consisted of the following as of September 30 and result from differences in the recognition of transactions for income tax and financial reporting purposes (in thousands):

	2016			2015
Depreciable assets	$	(2,257	)	$	1,618
Deferred revenue		80			96
Accruals and reserves		1,153			835
Stock-based compensation		3,113			4,194
Impaired strategic investments		2,701			4,186
Capital loss carryforward		63			1,456
NOL carryforward		3,324			—
Federal and state R&D credit		110
Other		587			586
Valuation allowance		(3,847	)		(5,721	)
Total deferred tax assets		5,027			7,250
Less current deferred tax assets		—			(546	)
Noncurrent deferred tax assets	$	5,027		$	6,704

Summary of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands):

	2016			2015			2014
Beginning of fiscal year	$	1,248		$	1,216		$	1,300
Increases in tax positions for prior years		77			50			43
Decreases in tax positions for prior years		(21	)		(10	)		(1	)
Increases in tax positions for current year		365			146			149
Lapse of the statute of limitations		(161	)		(154	)		(275	)
End of fiscal year	$	1,508		$	1,248		$	1,216